Global diesel prices surge as refinery attacks squeeze fuel supplies

Global diesel prices surged on Tuesday, 11 August, as a series of refinery attacks and tightening inventories triggered a sharp rally in US and European fuel markets. US ultra-low-sulfur diesel futures jumped 7.4% to $4.19 a gallon, marking the largest single-day increase since July 13, while European diesel refining margins climbed approximately 10%. \n\n Refinery attacks and supply shocks \n The price spike follows targeted strikes on critical energy infrastructure. A Ukrainian attack on a refinery in Russia’s Tatarstan region and renewed Houthi strikes on Saudi Arabia’s Jazan refinery have severely constrained output. The Jazan facility, which has been offline since July 27, is not expected to resume operations until at least 30 August, according to industry reports. These disruptions are compounded by the ongoing closure of the Strait of Hormuz, a vital maritime corridor for both crude and refined petroleum products. \n\n Data from Reuters indicates that US distillate inventories, which include diesel and heating oil, have plummeted to 107.2 million barrels. This figure represents the lowest stockpile level for this period in three decades. In response to domestic shortages,…